What is the difference between short-term and long-term capital gains?

Short-term gains come from stocks held for less than 12-24 months, depending on your country. Long-term gains come from stocks held longer. Long-term gains usually have lower tax rates. In India, short-term gains are taxed at 20%, while long-term gains are taxed at 12.5%.

How much tax do I pay when I sell shares in India?

In India, short-term capital gains on stocks are taxed at 20%. Long-term gains (stocks held over 12 months) are taxed at 12.5% for gains above ₹1.25 lakh. Securities Transaction Tax is paid separately when you sell.

Do I pay capital gains tax if I reinvest my profits?

Yes, you still owe capital gains tax when you sell stocks, even if you reinvest the money immediately. The tax is triggered by the sale, not by what you do with the money afterward.

Which country has the lowest capital gains tax?

The US offers 0% tax on long-term gains if your total income is low. Australia and Canada tax only 50% of your long-term gains at your regular income rate. India charges a flat 12.5% on long-term stock gains.

Capital Gains Tax Calculator

Calculate tax on stock profits for India, US, UK, Canada, and Australia.

What this calculator does

Calculates capital gain (sale price - purchase price × quantity)
Applies country-specific tax rates
Shows net profit after tax

How to Use

Enter purchase price

The price you paid per share

Enter sale price

Current price or planned sale price

Add quantity

Number of shares to sell

Select holding period

Short-term (<1 year) or long-term

Choose country

Tax rates vary by location

View results

See gain, tax, and net profit

Example Calculation

Scenario: You bought 100 shares at $100 and sold at $150 after 2 years.

Purchase (100 × $100)$10,000

Sale (100 × $150)$15,000

Capital Gain$5,000

Tax (15% long-term)-$750

Net Profit$4,250

Country-Specific Tax Rates

Country	Short-Term Rate	Long-Term Rate	Holding Period for LTCG
India	20%	12.5%	Over 12 months
USA	10-37% (income-based)	0%, 15%, or 20%	Over 12 months
UK	18% (basic) / 24% (higher)	18% / 24%	Over 12 months
Canada	Marginal rate on 50% of gain	Marginal rate on 50% of gain	No distinction
Australia	Marginal rate on full gain	Marginal rate on 50% of gain	Over 12 months

Frequently Asked Questions

Capital gains tax is calculated on the profit you make when selling stocks. Subtract your purchase price from your sale price, then multiply by the number of shares. The tax rate depends on how long you held the stock and which country you live in.

Glossary

Capital Gain

The profit you make when you sell an asset for more than you paid. If you bought a stock at ₹100 and sold at ₹150, your capital gain is ₹50.

Holding Period

The length of time between when you bought a stock and when you sold it. This determines if your gain is short-term or long-term.

Long-Term Capital Gains (LTCG)

Profit from selling stocks held longer than the threshold period (usually 12 months). These gains are taxed at lower rates in most countries.

Short-Term Capital Gains (STCG)

Profit from selling stocks held for less than the threshold period. These are usually taxed at higher rates or as regular income.

Net Profit

The amount you actually keep after paying capital gains tax. This is your capital gain minus the tax owed.

Next Steps

SIP Calculator

Plan monthly investments

CAGR Calculator

Calculate annual growth rate

Brokerage Calculator

Estimate trading costs

Try Portfolio Risk Checker

Analyze portfolio health

Calculate Dividend Income

Estimate dividend earnings

Build your FIRE plan

Plan early retirement

Track gains in your portfolio

Track your portfolio performance